FOOD PREPARATION APPLIANCES IN ARGENTINA - ANALYSIS

Country Report | Dec 2022

KEY DATA FINDINGS Market Sizes

Retail volume sales grow by 18% in 2022 to 1.5 million Sales of Food Preparation Appliances
Mixers is the best performing category in 2022, with retail volume sales increasing by Retail Volume - '000 units - 2008-2027
22% to 277,000
Philips Argentina SA is the leading player in 2022, with a retail volume share of 27%
1,477 Forecast
2,000
Retail volume sales are set to increase at a CAGR of 3% over the forecast period to
1.7 million
1,500
2022 DEVELOPMENTS

Demand for food preparation appliances increases for third consecutive

1,000
year
Food preparation appliances remained one of the most dynamic categories of
consumer appliances in Argentina during 2022 as volume sales increased for the third
500
consecutive year. The main drivers of growth in the category include the lingering
appeal of cooking elaborate dishes at home from scratch using fresh ingredients, a
trend which first emerged at the peak of the COVID-19 pandemic, when consumers
were spending much more of their time at home, especially white-collar professionals 0
engaging in remote working. Furthermore, the increasing importance of the health and 2008 2022 2027
wellness trend and the importance of healthy eating also supported strong growth in
sales of food preparation appliances which can facilitate the preparation of healthier
snacks and meals. Among the categories of food preparation appliances to register Sales Performance of Food Preparation Appliances
dynamic sales growth over the second half of the review period were blenders, food % Y-O-Y Retail Volume Growth 2008-2027
processors and mixers, all of which witnessed dynamic sales growth in 2022.
Furthermore, the regularly dynamic growth registered in blenders was spurred by the
growing numbers of parties and celebrations being held at home, rather than in a
17.5% Forecast
consumer foodservice establishment. In particular, younger consumers have grown to 40%
appreciate the value for money that preparing their own cocktails at home represents,
rather than ordering the same drinks from a bar, pub or discotheque.
20%
Local food processors manufacturing industry protected by
antidumping resolutions
0%
February 2022 saw resolution number 90/2022 pass through the Argentinian Parliament
as the Ministry of Production Development took decisive steps to maintain
antidumping resolutions that were first sanctioned in 2016. These antidumping -20%
resolutions seek to protect the local food processor manufacturing industry from the
spectre of high volumes of low-cost imports from Brazil and China, among other
countries. These resolutions establish an import tariff of 24% for food processors -40%
imported from Brazil and of 202.79% for food processors imported from China. The
antidumping protection resolution passed in 2022 will be valid for five years. The
passing of these resolutions followed an investigation into the dumping of low-cost -60%
2008 2022 2027
imports that had been requested by local manufacturers Liliana SRL and Newsan SA,
which offer food processes under the brand’s Liliana and Atma respectively. Liliana and
Newsan manufacture food processors at their plants located in the cities of General
Baigorria in the province of Santa Fe and Campana in the province of Buenos Aires,
respectively. Together with Alladin SRL, a company which manufactures food
processors under license for Philips, these are the only companies to manufacture
these types of food preparation appliances in Argentina. These companies’ three
brands Liliana, Atma and Philips combined account for more than 80% of volume sales
in the category. The only player that imports food processors into the country is Groupe
SEB, which offers these appliances for sale under the Moulinex brand. In addition,
Philips also imports some of the food processors it sells in Argentina, in addition to the
locally manufactured appliances it sells in the country.

Philips maintains its overall leadership by holding the top spot in several
categories
Overall sales of food preparation appliances are accounted for mainly by blenders, food
processors, juice extractors and mixers, with these categories accounting for around
nine-tenths of total food preparation appliances volume sales in 2020. Competition
between the numerous brands present in each of these categories is very strong, with
Philips, Liliana, Moulinex, Atma, Oster and Peabody among the most dynamic players.
Of these players, Philips is the clear leader in aggregate volume sales terms, followed

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by Liliana, Moulinex and Atma, all of which are involved in an intense rivalry and battle
to maintain second place in the category. In terms of individual categories, Philips is
Sales of Food Preparation Appliances by Category
Retail Volume - '000 units - 2022 Growth Performance
the leading name in blenders, food processors and mixers and it is also one of the two
leading players in centrifugal juicers, along with Liliana.
Blenders
721.1
PROSPECTS AND OPPORTUNITIES Food Processors
180.6
Healthier eating habits to support the expansion of sales of food Juice Extractors
161.4
preparation appliances
Centrifugal Juicers
The forecast period is expected to see positive sales growth in all categories of food 158.6
preparation appliances. In particular, various lifestyle habits that emerged during the Slow Juicers
review period are expected to support rising demand for a diverse range of food 2.7
preparation appliances, with the focus on more nutritious meals and healthier ways of Mixers
cooking set to be particularly influential. Health and wellness is set to continue 276.5
increasing in importance as a consumer megatrend in Argentina during the forecast Other Food Preparation Appliance...
period and this is expected to go beyond merely taking more exercise and opting for 136.9
meals that are lower in sugar, salt and fat. In addition to playing sport and working out -10% 0% 45%
regularly, many Argentinean people are expected to take steps to take better care of
FOOD PREPARATION APPLIANCES 1,476.5 CURRENT % CAGR % CAGR
their mental health and, above all, constantly monitor the quality of their diet and as YEAR % 2017-2022 2022-2027
prepare healthy meals usually requires considerable time and effort, a range of food GROWTH
preparation appliances that can facilitate this process are expected to gain ground.
Among food preparation appliances that are ideally suited to the preparation of
healthy cuisine, slow juicers has particularly strong growth opportunities, although the
high prices charged for slow juicers means that demand is likely to be confined to a Competitive Landscape
small and narrow niche of very affluent consumers. The juice extracted using these
types of juicers is perceived as healthier than the juice extracted with the use of more
traditional centrifugal juicers as they work at slower revolutions, preserving more
Company Shares of Food Preparation Appliances
% Share (NBO) - Retail Volume - 2022
nutrients in the fruit and vegetables being juiced. Nonetheless, it may take some time
for consumers to become accustomed to the juice that is extracted using a slow juicer
Philips Argentina SA 26.7%
as it has a much stronger taste and thicker consistency than other types of fruit and
vegetable juice. Liliana SRL 15.7%
New San SA 12.1%
Kitchen robots to present competition to other categories of food
SEB Argentina SA, Groupe 11.0%
preparation appliances
Goldmund SA 6.6%
Kitchen robots is one type of food preparation appliances with strong potential are very
Oster de Argentina SA 4.3%
sophisticated and complete food preparation appliances. The multifunctional qualities
of kitchen robots means that these types of appliances have the potential to replace Visuar SA 2.2%
the functions of a wide range of food preparation appliances and small cooking
First Rate SA 2.0%
appliances as they are able to perform the same tasks as steamers, slow cookers and
rice cookers, among other categories of small appliances. Furthermore, kitchen robots Applica Americas Inc 1.6%
can also replace microwaves as they are able to cook and reheat food in the same way.
Electropuntana SA 0.4%
With so many functions in one device, some brands of kitchen robots also have the
ability to perform the same functions as kettles, blenders, handheld mixers, Electrolux Argentina SA 0.1%
countertop mixers and food processors. With more than 15 different functions, Other Private Label 7.4%
Thermomix is the most emblematic brand of kitchen robots. All Thermomix appliances
have Wi-Fi internet connection incorporated and they can be used to download any of Others 10.0%
the 60,000 recipes available in the brand’s Cookido app. Volume of sales of Thermomix
kitchen robots soared by around a third over the course of 2021, rising again by around a
third over the first quarter of 2022, year-on-year, according to the company. The brand
has witnessed a major expansion in consumer awareness and demand since its arrival
in Argentina in 2017. The brand’s most important distribution channel in Argentina is a Brand Shares of Food Preparation Appliances
network of licensed resellers, although there are also seven mono-brand stores located % Share (LBN) - Retail Volume - 2022
in the country that exclusively sell Thermomix kitchen robots. June 2022 saw
Thermomix invest USD180,000 in the opening of a brand new mega store in the district Philips 26.7%
of Vicente Lopez in the northern suburbs of Buenos Aires. The 500 sq m store is the Liliana 15.7%
largest physical store of Thermomix in Latin America. However, very high prices are
Atma 12.1%
likely to continue constraining the development of kitchen robots generally in
Argentina, especially in the case of Thermomix, a brand with an explicitly premium Moulinex 11.0%
positioning and a unit price as high as ARS460,000, as of July 2022. While the brand had
Peabody 6.6%
become particularly popular among high-income women looking to incorporate healthy
eating habits to their diets, the popularisation of kitchen robots that is expected to be Oster 4.3%
seen in Argentina over the forecast period will inevitably involve more affordable Smart Life 2.2%
brands and new brands that are currently in the process of launching their own versions
of these exciting and novel appliances. Newsan for instance launched its AtmaMix Black+Decker 1.6%
brand of kitchen robots in December 2021. The local player’s own version of the kitchen Ultracomb 1.5%
robot has 12 functions including mixing, blending, convection cooking, steaming and
weighing food, among others, with the much lower unit price of ARS132,000 as of July Yelmo 0.9%
2022 expected to improve very appealing to local consumers. Other less well-known Electrolux 0.1%
brands that are present in the category include Gadnic, ChefMaker and Easyways.
Other Private Label 7.4%
Rising sales of more sophisticated countertop mixers to boost average Others 10.0%
unit price 5-Year Trend
Increasing share Decreasing share No change
In Argentina, sales of mixers are split fairly evenly between countertop mixers and
handheld mixers. On average, countertop mixers have much higher unit prices than
handheld mixers. Among countertop mixers, the so-called kitchen machines, also
known as amasadoras or batidoras planetarias in Argentina, are by far the most
expensive options. With volume of sales of such “kitchen machines” expected to
expand rapidly over the forecast period, a trend that is very much in line with the trend

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towards preparing more elaborate types of food. The most obvious differences
between standard countertop mixers on one hand and the much more sophisticated
kitchen machines on the other are that the bowls of kitchen machines are usually made
from stainless steel and they invariably have far more operational power. KitchenAid is
the most renowned premium brand of kitchen machines in Argentina, with prices for
KitchenAid mixers starting at ARS100,000, as of July 2022. However, there are much
more affordable brands that offer similar functions and features available, including
SmartLife with a unit price of ARS37,000 as of July 2022 and Peabody with a unit price of
ARS34,000 as of July 2022.

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